Noida will establish a co-developer policy to revitalise delayed realty projects.

By Bricksnwall | 2024-10-27

The Noida government has decided to lock the assets of 49 property allottees who owe ₹1,560 crore in financial dues.

The Noida Authority announced intentions on Saturday to adopt a co-developer strategy aimed at revitalising stalled housing projects, a move that might assist thousands of purchasers who have been waiting for their homes to be completed, authorities said. The decision was made at a board meeting on Saturday chaired by Uttar Pradesh chief secretary Manoj Kumar Singh at the Noida authority's Sector 6 headquarters. Key officials in attendance included Noida authority CEO Lokesh M and Gautam Budh Nagar district magistrate Manish Kumar Verma.

The Noida Authority Board has appointed two co-developers to commence development on two stalled housing projects by Sunworld Residency Private Ltd. in Sector 168 and Ambience Private Ltd. in Sector 115.

The authority chose two co-developers to speed up building on two long-delayed housing projects—Sunworld Residency in Sector 168 and Ambience in Sector 115—that had stopped due to insufficient last-mile finance, authorities said. Nimbus Projects Limited will manage the Sunworld project, while Theme County Private Limited will handle the Ambience project.

Despite several attempts, Sunworld Residency, Ambience, Nimbus Projects Limited, and Theme County Private Limited did not respond to HT's request for comment on the subject.

Chief Secretary Singh has asked the Noida authority to create a special co-developer strategy to solve particular financial and technical challenges that have hampered the completion of several housing projects.

Lokesh M, CEO of the Noida Authority, stated that the existing co-developer model, as specified in the state's December 21, 2023 rules, does not adequately address the particular issues of each halted project. "The new policy will be made in view of the issues being faced by the delayed housing projects," stated the company's boss. However, the policy is currently in development, with no set date for implementation.

The state government has introduced Nimbus Projects Limited for the Sunworld project and Theme County Private Limited for the Ambience housing project as part of a policy published on December 21, 2023, according to officials. This campaign aims to obtain funds and assure prompt delivery for flat owners, affecting an estimated 2,000 homebuyers across these two projects, they stated.

Furthermore, the administration has required that property buyers and realtors execute agreements only after proper registration. This amendment relates to the current practice of unregistered property sales. As a result, buyers will have to pay stamp duty based on the agreement amount.

Assets of defaulting developers will be shut

The authority has decided to seal the assets of 49 property allottees owing about ₹1,560 crore in financial dues. This move follows a last notification delivered to those who have failed to pay their debts.

The gathering also witnessed progress in the Dadri-Noida-Ghaziabad Investment Region (DNGIR), commonly known as New Noida. Following the UP government's recent approval of the DNGIR master plan, the Noida authority board gave authorisation to acquire property for development, which officials claimed is expected to spur regional growth. Covering 20,911 hectares across 84 villages in Bulandshahr and Gautam Budh Nagar, including the Noida International Airport, the additional region will be equal to Noida's present developed land area.

Source: Hindustan Times